Wearable devices, smart or otherwise, are becoming more prevalent in a variety of markets and industries. The use of wearable devices comes with a need for the security of personal information, an issue that concerns many people. As a result, several business industries, such as financial institutions, have taken precautionary measures to ensure the safety of personal information while ensuring convenience. This is typically accomplished by authenticating the wearable device and preauthorizing the wearable device to execute transactions.
However, to date, transaction terminals like automated teller machines (ATMs) and point of sale terminals have remained “contact” terminals requiring swiping of a magnetic strip of a payment card or similar function for authentication of the user. The absence of contactless functionality and transaction queuing with transaction terminals in the marketplace is largely due to security issues and the differences in data that must be transmitted and processed. Furthermore, the authentication obtained by conventional means (providing user name and passcode, swiping the magnetic strip of a payment card and the like) are typically temporary and last only for a particular session at a transaction terminal and do not permit transaction queuing. With users performing a multitude of transactions using wearable devices in the financial industry, there is a need to ensure security and convenience. Although wearable devices may be used as a form of a payment vehicle at contactless point-of-sale terminals at merchant locations, the merchant may still have to confirm the identity of the user adorning the wearable device at every interaction to determine the trustworthiness of the user and reduce the likelihood of misrepresentation. In this regard the user would have to provide authentication credentials to authorize the transaction. Thus, a need presently exists for a product that permits the user to engage in transactions with transaction terminals that utilize the pre-authenticated wearable device of the user to authorize transactions.